Trump-backed candidate joins calls for unlimited film and TV incentives
Steve Hilton, the Trump-backed candidate for governor of California, joined calls on Thursday for an unlimited state grant for film and TV production.
Joined by Gloria Romero, who is running for lieutenant governor, Hilton unveiled his proposal outside the shuttered Cinerama Dome, which has become a symbol of Hollywood’s decline.
“This is an emergency,” Hilton said, saying the industry had suffered “benign neglect” under 16 years of Democratic Party rule in California. “We are letting it die as other states in America and other countries compete aggressively for the work and the jobs that come with it.”
San Jose Mayor Matt Mahan and former Los Angeles Mayor Antonio Villaraigosa have also called for eliminating the $750 million limit on state grants. Like her, Hilton did not provide an estimate of how much that would cost.
“It depends on how successful we are,” he said, noting that while there would be upfront costs, the greater stimulus would also bring economic benefits. “I want to reduce spending, which means we can reduce taxes, and this is a version of a tax cut.”
Tom Steyer, one of the leading Democratic contenders, has also proposed raising the $750 million limit, though he has not proposed eliminating it altogether. In response to Hilton’s plan, a spokesperson for Steyer emphasized that he also strongly opposes the merger of Paramount and Warner Bros., which is expected to cost thousands of industry jobs.
“Tom is the only candidate who will stand up against corporate monopolies and protect working people,” the spokesperson said. “Trump-backed Steve Hilton would approve mega-mergers like Warner Bros.-Paramount, pushed by MAGA billionaires.”
Mahan, meanwhile, responded by saying Hilton’s proposal is unrealistic.
“We have to keep Hollywood in Hollywood,” Mahan said. “My plan does that. Steve Hilton’s plan makes promises even when he knows he can’t keep them. No shock that Trump’s hand-picked candidate has trouble with the truth — remember the wall?”
In an interview, Hilton presented his ties with the White House as positive and said he would push for a federal incentive for film production that would be in addition to state subsidies. He said he wants the combined California and federal rebate to total 60%. He has met with the Motion Picture Association, Hollywood unions and Jon Voight, Trump’s special ambassador to Hollywood.
“Jon is actually a friend of mine,” he said. “He supported me on the first day of my campaign. The president supported me. You know, we’re a team.”
Hilton also wants the California incentive – currently set at 35%-40% of below-the-line costs – to include above-the-line salaries for actors, directors, writers and producers.
Of the major production centers, Georgia is the only one with an unlimited tax benefit. It covers 30% of costs above and below the line, and peaked at $1.3 billion in 2022 before falling to about half during the industry-wide slump. According to data from the Bureau of Labor Statistics, California’s industry is larger than Georgia’s, with a manufacturing workforce about eight to 10 times larger.
“We want it to be high enough to get attention,” Hilton said. “This is a behavioral question. What do we need to do to get people – urgently – to reconsider production in California and Hollywood?”
As the leading Republican in the polls, Hilton is a heavy favorite to reach the November runoff.
